Apple Agrees to Pay $53M to Settle iPhone Warranty Lawsuit
According to several lawsuits combined in San Francisco, no matter what the problem, Apple refused to honor warranties if a white indicator tape embedded in the phone near the headphone or charging portals had turned pink or red. However, the tape’s maker, 3M, said humidity, and not water contact, could have caused the color to at least turn pink. wired.com
Lead counsel for the plaintiffs, Jeffrey Fazio, declined to be quoted on the deal because the settlement is not public. Apple did not immediately respond to a telephone inquiry late Thursday.
Apple Warranty Settlement for Water Damages.
The settlement was signed by Apple counsel Noreen Krall on April 10, 2013. It should be filed with California law sometime in the next few weeks.
Filed: NORTHERN DISTRICT OF CALIFORNIA
STIPULATION OF SETTLEMENT
AND RELEASE OF CLAIMS
This Stipulation of Settlement and Release of Claims is made by and between Apple Inc., a California corporation, and Charlene Gallion, Christopher Corsi, Raj Johal, Sean Pennington and Meghan White, individually and as representatives of the Settlement Class.
“Federal Actions” means Gallion v. Apple Inc., No. CV-lO-016l0 (N.D. Cal.), Corsi v. Apple Inc., No. CV-lO-033l6 (N.D. Cal.), and Calix v. Apple Inc., No. CV-lO- 0676 (M.D. La.), which have been consolidated as In re Apple iPhoneliPod Warranty Litigation, No. CV-lO-01610 (N.D. Cal.).
“LCI” is a collective reference to the Liquid Contact Indicator and the Liquid Submersion Indicator. “Liquid Contact Indicator” is the name Apple used from December 22, 2009, to the present to describe the Water Contact Indicator Tape it purchased from 3M Company and installed in, inter alia, a location visible through the headphone jack of all Class Devices and adjacent to the dock connector of the iPhone 3G and iPhone 3GS. “Liquid Submersion Indicator” is the name Apple used before December 22, 2009.
“Released Persons” means Apple and each of its past or present directors, officers, employees, insurers, shareholders, attorneys, advisors, consultants, representatives, partners, affiliates, parents, subsidiaries, joint venturers, independent contractors, wholesalers, resellers, distributors, retailers, related companies, and divisions, and each of their predecessors, successors, heirs, and assigns.
“Settlement Fund” means $53,000,000 (fifty-three million dollars) in cash
that Apple has agreed to deposit into a non-reversionary settlement fund that is FDIC-insured
and administered by the Settlement Administrator, subject to the control and jurisdiction of the
Court, from which all Settlement Class Members’ claims, all attorneys’ fees and litigation
expense reimbursements sought by Class Counsel, and any incentive awards to Class
Representatives will be paid.
“Settlement Website” means the website established by the Settlement Administrator for the purpose of this Settlement.
Within fifteen (15) banking days after the Effective Date, Apple shall deposit $53,000,000 (fifty-three million dollars) as the Settlement Fund in full settlement of the claims of the Settlement Class; provided, however, that Apple shall separately pay notice and administration costs. The Settlement Fund shall be used to pay Class Counsel’s attorneys’ fees and litigation expense reimbursement and Class Representative incentive awards, as ordered by the Court. The Net Settlement Fund shall then be distributed to Settlement Class Members in accordance with the plan of allocation.
Class Counsel will apply for an award of attorneys’ fees and reimbursement of reasonable litigation expenses based on a percentage (up to, but not more than, 30 percent) of the $53,000,000 Settlement Fund, as provided by applicable law.
Allocation of Settlement Funds. Each Direct-Payment Settlement Class Member for whom the Settlement Administrator has a current postal mailing address and each Claims-Made Settlement Class Member who submits a valid claim approved by the Settlement Administrator will receive a proportionate share of the Net Settlement Fund.
Apple shall provide Published Notice to be published once in USA Today, a newspaper of national circulation, and once on a different date in Macworld, a magazine of national circulation.
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